On June 19, in line with Tianfeng International analyst Ming-Chi Kuo, Intel’s next-generation Xeon (Xeon) server chip “Sapphire Rapids” might be postponed till Q2 2023.
Ming-Chi Kuo mentioned that his newest provide chain survey confirmed that shipments of the much-anticipated Intel server processor Sapphire Rapids could also be delayed till 2Q23,Significantly later than the market consensus of 2H22which is unhealthy for each Intel and its server provide chain.
Ming-Chi Kuo mentioned that Sapphire Rapids can considerably enhance the unit worth of associated elements, which is helpful to suppliers’ income and EPS. Therefore, the cargo delay might be detrimental to the operational efficiency of Intel and its server provide chain, which primarily consists of ABF, server producers, cooling associated, reminiscence and energy administration ICs, and so forth. additionally,There isn’t any assure that demand will stay when Sapphire Rapids begins mass shipmentsparticularly throughout a recession.
IT House has discovered that Sapphire Rapids has been delayed many occasions. Guo Mingji mentioned that the preliminary cargo plan is 4Q21.This signifies that Intel’s execution has quite a lot of room for enchancmentMing-Chi Kuo additionally considered Intel’s future commitments primarily based on extra superior processes and new chip cargo plans extra conservatively.
Sapphire Rapids makes use of a course of known as “Intel 7”, and makes use of EMIB expertise, mixed with substrate and interposer (interposer), the output and delay are higher than outsourced packaging and testing, the drawback is that the fee is larger. Although Intel handles many of the packaging work itself, shortages of key uncooked supplies are affecting manufacturing. Since Sapphire Rapids is Intel’s first Xeon chip to totally make the most of EMIB expertise, costs are anticipated to extend.